Domestic competition for Northvolt as Alelion plans battery factory

The company is targeting, among other things, industrial vehicles with this venture. Alelion’s factory is expected to be completed and ready for production in 2018, and in comparison, Northvolt is planning to start construction of is massive factory during the second half of 2018.

"We have developed and delivered lithium-ion batteries for more than ten years and seen how the market for these products has matured as the steadily increasing interest in electrification and sustainable energy solutions has," said Alelion Energy Systems CEO Daniel Troedsson. "With a dedicated production facility, we are able to profitably take advantage of the commercial opportunities of Lithium technology."

Alelion Energy Systems is currently developing the next generation of lithium-ion batteries and the investment in the dedicated factory is being done to better meet different customer requirements and to seize the global potential of the new products. The company has received funding from Gothenburg-based investment company Pegroco Invest AB and the state-owned venture capital company Fouriertransform AB.

"Our new Generation 3 batteries provide us with many more possibilities for industrial standardization and adaptation to specific requirements of different customer segments and markets", said Daniel Troedsson. "With the new batteries and their own production facility, we can in a completely different way meet the sharp rise in global demand for lithium-ion batteries that follow in the wake of the need for more sustainable transport."

The factory will be built in the Volvo area in Torslanda on Hisingen and will initially have a technical production capacity of barely 500 MWh per year. The production line will have a high degree of automation but still allow completely customised production as a result of the new generation of batteries based on modules. Initially, some 20 people are expected to be recruited.

"Thanks to the flexible production model, the factory will be able to handle both current and future battery technologies, which is a major advantage in a market characterised by rapid technological development," says Daniel Troedsson.

Alelion started with lithium-ion batteries in 2006 and is a supplier to scompanies such as; Toyota Material handling and Jungheinrich. In the truck industry, a rapid transition from lithium-ion lead-acid batteries is underway – something that Alelion plans to be a part of.

In recent years, interest in electrification and sustainable energy solutions has increased dramatically, which also paved the way for Alelion expansion and investment in the dedicated factory.

"We have only just begun to explore the opportunities that lithium-ion technology provides for more sustainable energy solutions," said Daniel Troedsson. "The electrification of various types of vehicles was the starting point and the major breakthrough for lithium-ion technology, but we are now seeing how this technology can be used for everything from storing excess energy to balancing and optimizing energy use in homes and industries. "